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 September 30, 2010
Tepal Oxide Cap Metallurgical Test Work Delivers 78.4% Gold Recovery

 Vancouver, B.C., September 30, 2010 -- Geologix Explorations Inc. (TSX:GIX) (the "Company" or "Geologix") is pleased to announce, further to previous announced sulphide metallurgical results, it has completed extensive cyanide bottle-roll and column metallurgical test work on the oxide portion of the Tepal Project resource and has received favourable recoveries of 78.6% for gold in the bottle-roll and 78.4% for gold in the heap leach column tests, respectively. Cyanide consumption is low at 1.6 kilograms (kg)/tonne.

Tepal Project Oxide  Recoveries

Bottle-Roll Tests

Gold %

Cyanide Consumption

78.6 %

1.4 kg/tonne

Column Leach Tests

Gold %

Cyanide Consumption

78.4 %

1.6 kg/tonne

Bottle-Roll Tests

P801.7mm Feed Size, 96-hour leach time

Column Leach Tests

12.5mm Feed Size, 88-days leach time



Dunham Craig, President and CEO stated "Once again, test work from Tepal has exceeded our expectations. Although the oxide portion of the Tepal resource only represents 14.5% of the resource, it's highly beneficial to project economics to get these types of recoveries from the oxide test work. When we internally assessed the Tepal project's resource and metallurgical recoveries during our due diligence period earlier this year, we used lower recovery rates than those returned from our latest test work. However, when we couple the previously reported sulphide recoveries of 87.4% for copper and 60.7% for gold with these 78.4% oxide gold recovery rates, we project it should impact favourably upon our Preliminary Economic Assessment work currently being conducted by SRK Consulting of Vancouver, British Columbia. This initial indication of the project's potential positive economics, coupled with the current 5,000 metre resource expansion drilling campaign, provides the Company with significant encouragement for the ongoing advancement of this project."

Core samples used in the metallurgical testing were collected in both the North and South Zones of the Tepal resource and were blended to a metal grade equal to the grade of the oxide portion of the resource. Additionally, samples were selected to spatially represent the average oxide ore characteristics. The tests were completed on both the North and South Zones and weight averaged by zone resource tonnages to derive an average recovery and reagent consumptions for the deposit. The bottle-roll and column leach test work was completed by McClelland Laboratories Ltd.., Sparks, Nevada under the direct supervision of William Joseph Schlitt, Consulting Metallurgist to the Tepal project. The oxide material represents 14.5% of the total Tepal project resource estimation, released by ACA Howe International Ltd. (see January 19, 2010 Press Release).

An alternative oxide processing method consisting of bench-scale flotation test work followed by cyanide-leaching of the resultant oxide concentrate is currently being investigated using a similar deposit representative sample selection to the above oxide test work. This flotation and bottle-roll test work portion of the review was conducted by G & T Metallurgical Services Ltd. in Kamloops, British Columbia.

Positive results were reported earlier from the sulphide mineralized portion of the Tepal project resource estimation (see August 3, 2010 Press Release).

Dunham L. Craig, P.Geo., a 'qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Properties of the Canadian Securities Administrators, has reviewed and verified the data contained in this news release.

Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral resource opportunities with the potential to host world class mineral deposits. The Company's primary focus is the Tepal Gold-Copper Porphyry Project in Michoacán State, Mexico, where the Company is aggressively exploring for potential resource expansion, and advancing toward preliminary economic assessment of the project in its ongoing effort to upgrade and increase the scale and viability of this emerging project.

CONTACT:

Jeffrey Wilson
V.P. Corporate Communications
Phone: (604) 694-1742
Toll Free in Canada and USA:
1 (888) 694-1742
Email: jwilson@geologix.ca

Dunham Craig
President & CEO
Phone: (604) 694-1742
Email: dcraig@geologix.ca
Website: www.geologix.ca

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
 
 

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